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Chinese Stocks Extend Yesterday's Plunge Despite Regulators "Asking" Insurers To Stop "Net Sales"
Following last night's afternoon session plungefest (with ChiNext's biggest drop in a month), as it appeared the government experimented with 'free' markets briefly, regulators have "asked" insurance companies to be "net sellers" of stocks going forward. With margin debt dropping for the 4th day in a row (to fresh 4-month lows), Markit noted that accusations of foreigners short selling shares is “overblown” by Chinese market regulators and not the cause of a recent rout in the stock market, according to the SCMP. The requests and threats appear to not be working as CSI-300 futures open down 0.7%.
As a reminder, this is how things ended last night...
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And tonight we are seeing losses extend...
- *CHINA'S CSI 300 INDEX SET TO OPEN DOWN 1% TO 3,777.15
- *CHINA SHANGHAI COMPOSITE SET TO OPEN DOWN 1.4% TO 3,655.67
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More measures...
China Insurance Regulatory Commission asked insurers to try their best to avoid net sales of equities in near future, Shanghai Securities News reports, citing an unidentified person from an insurer.
And refutations to China's claims that foreign sellers were "waging economic war"
Accusations of foreigners short selling shares is “overblown” by Chinese market regulators and not the cause of a recent rout in the stock market, South China Morning Post cites financial data co. Markit analyst Relte Stephen Schutte as saying.
- Official data shows minimal short selling of individual shares with shorting of domestic ETFs at only 1.2% of total domestic ETFs under management, Schutte is cited as saying
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On a more sombre note, the first major casualty of the Chinese stock market disaster has happened as Caixin reports well-known fund manager, Liu Qiang, a 36-year-old fund manager at Ruilin Jiachi, jumped to his death from a high-rise in downtown Beijing, angry the government intervened in the stock market rout, people who knew him say...
Several people close to Liu said he suffered from depression and returned to work in April after spending three years in the southwestern province of Yunnan where he was seeking treatment for depression. "He has had a very tough time in recent years," one of Liu's friends said.
Some of Liu's friends said he had been very frustrated by the government's efforts to support the bourse amid recent turmoil because he believed this upset market order. He thought that "the rules and order of the market had been broken … and was desperate, feeling that he was at his wit's end," one of his friends said.
Publicly available data show that the fund he managed, which invests in stocks and futures, had lost about 18 percent of its value this year and would be liquidated if losses exceeded 20 percent. But a person close to Liu said most of the fund's investors were his friends who agreed with his belief in long-term investment. They were not eager to liquidate the fund, he said.
In a blog dated July 7, Liu wrote: "The stock market disaster has turned many of my investment principles upside down … and made me doubt many times whether I'm still suitable for the market."
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Sweet. Now if we can just get the Wall Street casino to do the same.
C'mon S&P 666!
Buy silver. If we can take silver off the market we can crash the banks. That and at least we'd have a lot of shiny shiny.
All that gold in China (1600 tonnes admitted to) ain't helpin' 'em now...
Martin Armstrong claims that all confidence is lost over there.
Look out below...
Yeah, and in "sympathy" there's another raid on gold just during the wee illiquid hours of the Asian morning markets openings.
If I didn't know better, I'd think that somebody somewhere is trying to dress the prices to make the world really really look Great (Tony the Tiger Greeaaaaat!) before the Doom, Apparrently Already Known to Some, Befalls Mankind!
Shit ain't fuckin' funny anymore.
"the rules and order of the market had been broken … and was desperate, feeling that he was at his wit's end"
He should have just come to ZH. We've all felt (feel) that way, but we've helped eachother not jump off buildings over it.
Funny how China crashes 40% in a month and no Americans and Europeans even care.
Because they're asleep at the switch. Even Europeans! :)
Landed in Munichistan, DE last evening. No, they don't care one lick as long as Mohammed and his many brides keep receiving their checks. In the morning the scene was totally different. In the AM all one sees is ethnic Germans going to work so those checks don't bounce.
Our African born cabbie was quite intelligent and bilingual with many cousins in the US. He espoused the "American Dream" of hard work. Of course he also said America was better than Germany because in America they will give you whatever you need to get ahead. He also "loved" France.
If Munich is representative, Germany is as lost as France.
Because precious few Americans or Europeans own Chinese stocks. Very difficult to do as an individual. Investment houses are setting up China-based funds and ETFs, but they're not really ready for prime time yet.
I'm sure in a year or two we'll be seeing ads on TV for Wisdom Tree China funds touting "Take the Yuan out of China", but not yet. Not yet.
Double semi-kinda hedged by Yuan forwards collateralized with commodity inventories ....
It's a sure thing, Mao.
Proletariat should be getting pissed about now.
Most Americans wouldn't be able to find China on a map.
hey isnt that east or something? or is that west?
well...TPTB care. China is the largest threat to the petro dollar. So, they are watching very carefully.
GM is dumping it's "investment" grade stocks bought with US taxpayer bail out money!
Certainly Goldman and friends had a lot of stocks with that unlimited printing press behind them... just waiting to cause the crash, and to extend it... now selling to milk the Chinese dry.... just like they do with gold...
I thought Chinese were smarter than that! Round up the yankee traders and their spies..
ROTFLMAO!
"...regulators have "asked" insurance companies to be "net sellers" of stocks going forward."
Sooo, we can "officially say" the Chi-Com officials are all out now.
Hell, there may be a capitalist's market left when the dust clears ;-)
I believe that's a typo. Below that it says:
to try their best to avoid net sales of equities in near future
Market bottoming is a process, not an event. LOLOLOL.
the chinese are moar capitalist than the socialistic scumbags at goldman sachs. how funny comrade bitchez.
While of variable quality (big differences between plants), Chinese bearings kick USA's Timken right where it hurts: value for the money.
Yes, they know how to compete. I would rather have their products than own their stocks though...
"variable quality" = FAIL.
Normally, yes. Especially in the past.
It takes time, work and money to sift the gems from the dross. Even in bearings. We're covered there. We have even developed our own "branding" to a degree to keep OUR suppliers unknown to our competitors. Sure they can find out with enough work, but then they do not have the relationships built up either.
And our competitors would have to use Letters of Credit. 2% more. Ha ha.
Buy Califonia leal estate, can't go wong!
... and the US markets are holding up too well during the China crash. That means once China finally finds a bottom, S&P500 will have hardly budged thanks to the HFTs. The majority of the China correction has already been completed, so because the US markets haven't seen its own correction, then China will not be the canary for our pos stock markets.
Nasty t-t-tic Henry.
OT ZH log: User warning: MySQL server has gone away query: SELECT n.nid, n.type, n.language, n.uid, n.status, n.created, n.changed, n.comment, n.promote, n.moderate, n.sticky, n.tnid, n.translate, r.vid, r.uid AS revision_uid, r.title, r.body, r.teaser, r.log, r.timestamp AS revision_timestamp, r.format, u.name, u.picture, u.data FROM node n INNER JOIN users u ON u.uid = n.uid INNER JOIN node_revisions r ON r.vid = n.vid WHERE n.nid = 510742 in _db_query() (line 170 of /var/www/ZH3/includes/database.mysql.inc).
For whatever sophistication one thinks China has this is almost childish. First, the idea that markets can only go up and at light speed is an idea even Keynes himself would disavow. While they might want to imitate the success of capitalism and reap the rewards of it, they do not seem to remotely understand it.
Second, their interventions are blunt and juvenile...not to mention completely autocratic. It is beyond stimulus and those things. They might as well go Kim Jong Un and threaten to execute net sellers, market shorters and any counterinvestments...all things necessary to reduce losses and win in a bear market.
This is why you do not invest in primitive recent full-retard Communist countries. Between Vlad and Li you are gambling on two tables with crooked dealers.
this is warfare... China gets attacked by the US-minions to teach them a lesson, interesting to see who is going to win
it might not be only bubbles and/or correction, it might be compounded by major exaserbations for witch connecting back the dots wont do anything. Its time to be worried, the central planning and colonial withdrawls are about to begin. if this cant bull, even a bit!?!.......
Are there any other bubbles bankers can lend money into?
Debt has been around for 5,000 years but bankers still don't understand their product.
“What is wrong with lending into the Chinese stock market?” Chinese banker before last month
“What is wrong with lending more money into real estate?” Chinese banker last year
"What is wrong with lending more money to Greece?" European banker pre-2010
"What is wrong with a NINA (no income no asset) mortgage?" US banker pre-2008
"What is wrong with lending more money into real estate?" Irish banker pre-2008
"What is wrong with lending more money into real estate?" Spanish banker pre-2008
"What is wrong with lending more money into real estate?" Japanese banker pre-1989
"What is wrong with lending more money into real estate?" UK banker pre-1989
“What is wrong with lending into the US stock market?” US banker pre-1929
Banking, a job for every nation's half-wits.
Bankers and real estate, will they ever learn?
This is the trouble with psychopaths, they can never learn from their mistakes because they never take responsibility for them.
The banker’s product is debt and they use it to lend to people to buy things that exist already, like housing and stocks.
As they don’t understand their product, they create booms by lending too much money to buy things that exist already. The boom then feeds on itself as everyone wants to get in on Capitalism’s free lunch, making money by doing nothing and just investing in the latest boom.
Eventually the market saturates and the crash begins. The “free-lunch” herd mentality turns to panic and wholesale wealth destruction takes place.
The stuff that existed already, the houses and company stocks, still exist, just at lower prices.
How can we get bankers to use their product, debt, sensibly?
They don’t understand it at all.